Understanding Customer Relationship Development among Entrepreneurs

Chapter 1

INTRODUCTION

Background of the Study

The researchers are ABM Students, they saw themselves as a future

entrepreneurs. This study aims to develop and understand the relationship between

entrepreneur and customer. This will guide entrepreneur, customer, and especially

young entrepreneur to build good relationship with each other.

Based to Joseph Pancras on 28 November 2018. Corporate businesses in the

Americas; Europe, Middle East, and Africa (EMEA); and Asia-Pacific have been

practicing customer relationship management (CRM) for some time (LaValle and Scheld

2004). Business organizations that aspire to leverage global strengths (in terms of

products or processes to strengthen relationships with customers) have to face the

reality of differences across countries and cultures of those relationships due to the

differences in the marketplace.

We identified three categories of factors that affected the success of firms

practicing CRM across national boundaries or cultures. The first were external to the

firm and arose from differences in customer expectations, drivers of satisfaction, loyalty,

profitability, and customer value across countries or cultures. The second were also

external and arose from differences in the competitive environments, technological

infrastructure, political systems, and regulatory variations between countries around the

globe. The third were internal to the company and arose from differences in the
challenges faced by global firms in forming a customer-oriented organization, which

already encountered challenges in the form of culture and power issues. We used these

factors, grouped broadly into customer-level and firm-level differences, in examining the

extant literature on issues affecting the practice and success of GCRM efforts.

According to Maria Asuncion (Ina) Arraiza Ortiz on 23 January 2016, the Davao City is

facing a problem regarding with numerous young unemployed individuals. Thus, they

must see themselves as micro entrepreneurs.

Looking with the overall discussion regarding of the customer relationship

between the entrepreneurs, customer has an important role in the business as they

purchase and consume the service/product of the business. It creates or helps in

building well maintained communication and behavior to other individuals and socialize

with different personnel of a specific community. It also enables the readers to have a

deep understanding. If the readers will become future entrepreneur then he/she will

have a prior knowledge on how to handle their business and different situations that

might cause conflict.

Problem Statement

The main target of this study is to understand and describe the customer

relationship development among entrepreneurs specifically it tries to seek answers to

the following questions:

1. What are the entrepreneurs lived experiences in the aspects of customer

relationship development among entrepreneurs which includes communication,

experience, and behavior?

2. What are the entrepreneur’s insights with regards to customer relationship

development among entrepreneurs which includes communication, experience,

and behavior?

Audience of the Study

Result of the study will help ABM Students, Entrepreneurs, Young

Entrepreneurs, and Customers. ABM Students will be able to gain in depth responses

and widen their knowledge regarding with the customer relationship management.

Young entrepreneurs will be able to generate extra data from our conducted research

and deepen the understanding of handling diverse customers. Entrepreneurs can

generate relevant and quantifiable data. Customers will be able to control such

uncontrolled behaviors and beware on what they must do.

Worldview and Theoretical Lens

In this research, there are theories, model, proposition, or posits which will

support the study. First, the Relationship Marketing Theory  looks to utilize tools of

traditional marketing in creating long term value for customers. Relationship marketing

theory proposes that as company delivers value to customer, strength of

its relationship with the customer will improve and increasing the customer retention.

Second, the Customer Relationship Management Theory is commonly referred to

as CRM, is defined as the customer-oriented approach of a business that comprises of

analysis, planning, controlling and coordinating of the relationship between a company

and its customers: it is viewed as the combination of three key elements i.e. customer

strategies, technology and business processes; when these three aspects are taken

into account, an organization can get in-depth information about its customers and

achieve much enhanced customer loyalty and increased profitability.

Third, the CRM Strategy Model, is a company's plan to use CRM software to

help grow sales and improve customer service. It incorporates an overall

business strategy with input from sales, marketing, and customer service, identifying all

potential touch points that occur during the customer journey.

Lastly, the CRM Leadership Theory. This model deals with the behavior of CRM

managers in the telecom industry. The CRM Leadership view addresses the interplay of

self-centric progress, diversified CRM approaches and operational CRM problem

solving with genuine, customer-centric motives and relevant leadership tasks and roles

in CRM. CRM managers are at the center of change of activities and their different

behaviors are analyzed.

Review of Related Literature

This section presents the scholarly writings and literatures of well-known gurus

and scholars in the field of the study. The compiled literature will provide support to this

study. The topics are organized in the following manner of presentation: Understanding

Customer Relationship Development among Entrepreneurs, Communication,

Experience, Behavior.

Customer Relationship Management (CRM) has become one of the most

dynamic technology topics of the millennium. According to Chen and Popovich (2003),

CRM is not a concept that is really new but rather due to current development and

advances in information and enterprise software technology, it has assumed practical

importance. The root of CRM is relationship marketing, which has the objective of

improving the long-term profitability of customers by moving away from product-centric

marketing.

Bose (2002) noted that CRM was invented because the customers differ in their

preferences and purchasing habits. If all customers were alike, there will be little need

for CRM. As a result, understanding customer drivers and customer profitability, firms

can better tailor their offerings to maximize the overall value of their customer portfolio

(Chen and Popovich). The attention CRM is currently receiving across businesses is

due to the fact that the marketing environment of today is highly saturated and more

competitive (Chou et al, 2002). According to Greenberg (2004), CRM generally is an

enterprise-focused endeavor encompassing all departments in a business. He further

explains that, in addition to customer service, CRM would also include, manufacturing,
product testing, assembling as well as purchasing, and billing, and human resource,

marketing, sales and engineering. Chen and Popovich (2003) argued that CRM is a

complicated application which mines customer data, which has been retrieved from all

the touch points of the customer, which then creates and enable the organization to

have complete view of the customers. The result is that firms are able to uncover and

determine the right type of customers and predicting trend of their future purchases.

CRM is also defined as an all-embracing approach that seamlessly integrates sales,

customer service, marketing, field support and other functions that touch customers

(Chou et al, 2002). They further stated that CRM is a notion regarding how an

organization can keep their most profitable customers and at the same time reduce

cost, increase in values of interaction which then leads to high profits.

The modern customer relationship management concept was shaped and

influenced by the theories of total quality management (Gummesson) and by new

technological paradigms (Zineldin, 2000). There is however, a perceived lack of clarity

in the definition of customer relationship management, although all accepted definitions

are sharing approximately the same basic concepts: customer relationships, customer

management, marketing strategy, customer retention, personalization (Zineldin 2000).

However, while academics debate the subtitles of various definitions, the

practitioners have developed a wealth of applicative papers analyzing the concrete

challenges and opportunities of implementing the systems (Bacuvier et al. 2001). CRM

in some firms is considered as a technology solution, considering of individual

databases and sales force automation tools and sales and marketing functions so as to

improve targeting effort. Peppers and Rogers (1999) argued that other organizations
view CRM as a tool, which has been particularly designed for one-to-one customer

communications, which is the function of sales, call centres or the marketing

departments. Accordingly, Frow and Payne (2004) added that CRM stresses two-way

communication from the customer to the supplier to build the customer over time. The

two-way communication has been enhanced greatly by advances in technology

particularly the Internet.

In term of information technology (IT), CRM means an enterprise –wide

integration of technologies working together such as data warehouse, web site, and

intranet/extranet, phone support system, accounting, sales, marketing and production.

Kotler (2000) assured that CRM uses IT to gather data, which can then be used to

develop information acquired to create a more personal interaction with the customer. In

the long-term, it produces a method of continuous analysis and reinforcement in order

to enhance customer’s lifetime value with firms.

Goldenberg (2000) believes that CRM is not merely technology applications for

marketing, sales and services but rather when it is successfully implemented; it enables

firms to have cross-functional, customer-driven, technology-integrated business process

management strategy that maxims relationships. Chin et al (2003) stated that that due

to many technological solutions available for CRM automation, it is often misconstrued

as a piece of technology. But they maintained that in recent times many companies

have realized the strategic importance of CRM, and as a result, it is becoming a

business value-effort rather than technology- centric effort.

Using information technology as an enabler, CRM strategy leverages key

functional areas to maximize profitability of customer interactions (Chen and Popovich,

2003). It has been recognized that technological advancements and innovations, keen

competitive marketing environment, coupled with the internet are main drivers of

present and future customer profitability which makes it possible to appropriately and

proportionately allocate firm’s resources to all functional areas that affect customer

relationship ( Chou et al , 2003).

For customers, CRM offers customization, simplicity and convenience for

completing transactions irrespective of the kind of channel of interaction used (Gulati

and Garino, 2000). Many businesses today realize the importance of CRM and its

potential to help them achieve and sustain a competitive edge (Peppard, 2000). This

view was further boosted by Bose (2002) that as a result of changing nature of the

global environment and competition, firms cannot compete favorably with minor

advantages and tricks that can easily be copied by competing firms .The

implementation of CRM is an enabled opportunity to rise above minor advantages with

real focus on developing actual relationships with customers. Firms those are most

successful at delivering what customers want are the more likely to be leaders of the

future.
Definition of Terms

Customer Relationship is the development of an ongoing connection between a

company and its customer.

Communication to effectively communicate with the customers and can lead to

increase of sales, repeat business and referrals. On the other hand, not being able to

communicate can quickly lead to decreased sales, frustrated customers and negative

word of mouth.

Experiences enables the business to develop strategies for managing their

relationships and interactions with clients.

Behavior helps build customer relationship and streamline processes so they can

increase sales, improve service, and increase profitability.

Scope and Limitations

This study is only limited about customer relationship development among

entrepreneurs at Mintal Public Market. This research is limited from the start of

November 2019 up to March 2020. In gathering data, this study is done through

interviews and surveys among entrepreneurs.

 CHAPTER 2

METHODS

This chapter presents the research design, place of the study, participants of the

study, research instrument, data collection procedure, and ethical consideration in the

study.

Research Design

The research design to be used in this qualitative study is the phenomenological

research design. This design is most appropriate in this study since the current study

aims to understand the customer relationship development among entrepreneurs.

According to Paris (2014), phenomenological research design aims at getting a

thorough understanding of individual’s life experience for the same persons realistic

dealing with the hard facts of life.

Place of Study

Mintal Public Market was also known to be part of “Little Tokyo” in Davao City. In

the past decades, the Public Market was not fully developed in businesses and only

have few customers. Years passed, the Mintal Public Market grew. It was able to have

more customers and businesses. The researchers choose the Mintal Public Market as
their place of the study because the participants of the study are entrepreneurs. Thus, it

is more accessible to the students to conduct the research.

Participants of the Study

The participants of this study are 10 selected entrepreneurs in Mintal Public

Market.

Research Instrument

The main instrument to be used in their study is a survey questioner which is

composed of the following open ended questions:

1. What are the entrepreneurs lived experiences in the aspects of customer

relationship development among entrepreneurs which includes communication,

experience, and behavior?

 How do you build customer relationship in your business?

 What will you do in order for your customer to purchase your product?

2. What are the entrepreneur’s insights with regards to customer relationship

development among entrepreneurs which includes communication, experience,

and behavior?

 How do you handle if there’s a complaint from your customer?

  What are your ways to have an effective communication with your

customer?

Data Gathering Procedures

The following procedures will be observed in conducting our study for the

gathering of data.

First - Presentation of the research title for the desired approval

Second - As the research title was accepted, the researchers begin to find a

similar study about their research title. In order for us to be guided.

Third - The members were assigned to the different parts of the study and they

started to gathered information.

Fourth - The researchers organized the contents in the chapter 1.

Fifth - As the researchers have already made the chapter 1, they approach their

facilitator to assess their study.

Sixth - Then, they proceed in formulating their contents in the chapter 2 of the

study.

Seventh - Same as what the researchers did, they were assigned to do the

different task.

Eight - Then, they finalized the chapter 2 and let the facilitator evaluate the

research.

Nine - Start preparing for their upcoming defense.

Ethical Considerations

The researchers went to a thorough data analyzing. Analysts will emphatically

obey the regulations of intellectual laws and copyrights, as well as formal credits to the
authors in gathering data in conducting this research study. In conclusion, the

researchers will be reputable in the findings of the study. Participants were not harmed

or abused, both physically and psychologically, during the conduction of the research. In

contrast, the researcher attempted to create and maintain a climate of consolation.

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